For the past few days we have seen a "flattening" in the U.S. Treasury yield curve. We have seen the front end yields (3 years and shorter) move higher as bonds have sold off. At the same time, we have back end yields (10 years and longer) move lower as those bond prices rose.
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On Thursday, the Bureau of Economic Analysis released its advance estimate of real gross domestic product for the second quarter of this year— covering April, May and June. The release showed output in the U.S. increasing at a rate of 2.3%. This is a major acceleration from the first quarter when real GDP increased 0.6%.
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S&P LCD Zone

A group of Arch Coal’s lenders that purportedly hold more than 50% of the approximately $1.9 billion term loan have directed the administrative agent to not cooperate with the company’s proposed uptier exchange offer, asserting, among other things, that the transaction triggers the MFN protection on the term loan and that the company cannot tap its incremental facility for non-cash consideration, according to a statement released by the company this morning.
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Sixteen months ago in this space I suggested that Yelp should take advantage of its high-flying stock price to issue a convertible bond. It didn’t. The stock was around $83 then. It headed south. As I write this, after the company’s abysmal post-close guidance on Tuesday, the shares go for [...]
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